U.S. trade deficit narrows in April as exports outpace imports

The U.S. trade deficit narrowed in April as exports rose faster than imports, but the improvement masked how conflict and energy shocks can distort the trade ledger. The deficit in goods and services fell to $55.9 billion from $56.6 billion in March, while exports climbed to $327.1 billion and imports rose to $383.0 billion.

The gain was driven in part by goods exports, which increased $8.7 billion to $221.3 billion. Capital goods led the advance, rising $4.0 billion, including a $2.5 billion jump in computers and a $1.0 billion increase in civilian aircraft. The Commerce Department also said record petroleum exports helped push the overall deficit lower, underscoring how a surge tied to global energy demand can make the headline number look healthier even when the underlying economy remains vulnerable to geopolitical upheaval.

That tension is especially clear in April’s services figures. The goods deficit narrowed $2.4 billion to $83.7 billion, but the services surplus also slipped $1.7 billion to $27.8 billion. In other words, the trade balance improved, but not because every part of the external account strengthened. The monthly average deficit over the three months ending in April edged up to $55.8 billion, even as average exports reached $319.2 billion and average imports averaged $375.0 billion.

Year to date through April, the goods and services deficit was down $213.5 billion, or 49.1%, from the same period in 2025. Exports were up $128.2 billion over that stretch, while imports were down $85.3 billion. The Bureau of Economic Analysis said figures through March reflected annual revisions, a reminder that the trend line can shift as the data are refined.

The April report also suggested no major immediate hit from the U.S.-backed war with Iran, despite earlier concerns that fighting and the closure of the Strait of Hormuz could disrupt shipping and energy markets. Still, the conflict’s effect may be less visible in the headline deficit than in the prices paid by companies and consumers if oil, freight and insurance costs remain elevated. Economists warned in late May that the export surge might not last, especially as businesses poured more money into artificial intelligence and imported more computers, semiconductors and telecommunications equipment. For Washington, the April trade figures offered a narrow improvement, but one that was flattered by oil and shadowed by instability.